You are here: Home - Credit Cards & Loans - News -

Almost £1bn lost to fraud in 2017

0
Written by:
15/03/2018
Banks and card companies prevented £1.46bn in financial fraud attempts over 2017, equivalent to £2 in every £3 of attempted fraud being stopped, but UK Finance data also showed £967.8m was lost to the practice.

Unauthorised frauds accounted for £731.8m, while authorised frauds – where the account holder has been deceived into providing authorisation for payments – amounted to £236m. The UK Finance research found there were 1,910,490 reported cases of unauthorised financial fraud last year, a 3% rise on 2016 figures.

Unauthorised fraud losses on payment cards fell 8% year-on-year to £566m, with the industry helping to prevent £984.9m in attempted card fraud. Cheque fraud fell 28% to £9.8m, the lowest annual total on record, with £213.3m of fraud prevented. However, losses due to remote banking fraud rose 14% to £156.1m, despite banks preventing 27% more, or £261.4m of such attempts.

Authorised

Meanwhile, data on authorised push payment scams (APP or authorised bank transfer scams) were collected for the first time, totalling £236m in 2017. Of the 43,875 reported APP cases, 88% were retail consumers who lost an average £2,784 per case, while scams on businesses took out an average £24,355 per case.

Financial providers were able to return 26%, or £60.8m to the victims of APP scams. Authorised fraud can be particularly damaging because at present legislation does not offer protection for those who were tricked into authorising payments themselves.

Tony Blake, senior fraud prevention officer at the Dedicated Card and Payment Crime Unit, said: “With criminals using social engineering to target people and businesses directly, it’s vital that everyone follows the advice of the Take Five campaign. Always stop and think if you are ever asked for your personal or financial details. Remember, no bank or genuine organisation will ever contact you out of the blue and ask you to transfer money to another account.”

Tactics

Intelligence indicated that social engineering tactics were employed to commit fraud, where fraudsters manipulate people into giving personal details or transferring money directly to them, for instance through impersonation scams. Data breaches were also a major contributor to fraud losses, with criminals using stolen data to commit fraud directly to make unauthorised purchases, impersonate individuals, or facilitate deception scams.

Indeed, Financial Conduct Authority (FCA) figures showed that reported incidents of hacking attempts against financial services firms rose 80% from 38 in 2016 to 69 in 2017. The FCA data also showed a fourfold increase of hacking attempts resulting in loss of data over that period.

Katy Worobec, managing director of economic crime at UK Finance, said: “The finance industry is committed to playing its part – investing in advanced security systems to protect customers, introducing new standards on how banks respond to scam victims, and working with the Joint Fraud Taskforce to deter and disrupt criminals and better trace, freeze and return stolen funds.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2260876-distress-debt
Debt triggered by divorce and redundancy, finds charity

Debt problems tend to appear at significant life events such as divorce or redundancy finds debt charity StepChange.

Close